Effect of Accounting Practices on Financial Performance of Small and Medium Enterprises in……

3.5.3 Interview

The researcher conducts personal interviews. The vital of this was to obtain extra explanations from respondents that is not there in the questionnaires. Therefore, the structured interviews are useful instrument in the data collection because they allow one to seek for further clarification of the answer given by the interviewees.

3.4Reliability and validity of the research instruments

Cronbach's alpha coefficient is to test the reliability and validity of data collected. Lee Cronbach (1951) defines reliability as an attribute of an instrument to measure consistency. Consistency shows that an instrument has constructive value. Reliability refers to the extent to which a measuring instrument contains variable errors that appear inconsistent from observation during any one measurement attempt or that vary each time a given unit is measured by the same instrument. Construct validity is established by relating measuring instruments to a general theoretical framework in order to determine whether the instrument is tied to the concepts and theoretical assumptions they are employing (Nachmias&Nachmias, 2008).A pilot study was carried out to determine reliability of the instrument used in the collection of data. This was to ensure that the instrument collected are reliable and valid data.

Reliability analysis was subsequently done using Cronbach’s Alpha which measures the internal consistency by establishing if certain item within a scale measures the same construct. Therefore when Cronbach's alpha lies within the 0.8≤ α ≤ 0.9 then category indicate that the survey instrument was good in terms of internal consistency. Validity is concerned with meaningfulness of research component. The validity of the research was assured through designing appropriate questions for the questionnaire.

Table 2 showed the results of data reliability using the Cronbach alpha coefficient lies within the 0.8≤ α ≤ 0.9 this category indicated that the survey instrument was good in terms of internal consistency. The results indicated that all the Cronbach alpha coefficients alpha coefficient which shows that the scales are acceptable so that further analysis can be possible.

The results indicated that all the Cronbach alpha coefficients alpha coefficient which shows that the scales are acceptable so that further analysis can be possible.

IV. Findings

4.1 Discussion of the findings in relation to record keeping on the performance of smes

According to Reed, (2010), he has observed that it gives excellent evidence of how the transactions were managed in the firm and coming up with the great steps of complying with business high quality of operation.

58%rated on point scale one that the business keeps records of credit sales, 42% rated on point scale one that the business keeps records of employees. Also, 43% rated on point scale one that the business records credit purchases. Furthermore, 35% rated on point scale one that the business keeps record of all the receipts and payments.

Moreso,33%rated on point scale one that the business records all the assets, moreover,53%rated on point scale one that the business records all its expenditures. Inaddition,70%rated on point scale one the business maintain records. Many more, 58% rated on point scale one that to track materials and ensure that borrowed files are returned worked well. Not only that 75% rated on point scale one that the business keeps record for future analysis. Lastly, 57% rated on point scale one that it helps in tracking the sale statement.

The objective one was established and hence extent to which the deployment of record keeping practices influence the performance of smes. The finding show that many statements were strongly agree by the respondents i.e,the business